Genstar Portfolio Company Altra Holdings, Inc. to Acquire TB Wood's Corporation for More than $120 Million

Transaction Combines Two Leading Power Transmission Companies 


SAN FRANCISCO, Feb. 21  /PRNewswire/ -- Genstar Capital portfolio company Altra Holdings, Inc. (NASDAQ:AIMC) has entered into a definitive agreement to acquire TB Wood's Corporation (NASDAQ:TBWC) for $24.80 per share in cash, combining two leading players in the power transmission sector.  Genstar, a middle market private equity firm that focuses on investments in selected segments of the industrial technology, life sciences, healthcare services, and business services sectors, led the successful initial public offering of Altra in December and continues to hold an approximate 30% stake in the company.

Altra is a leading multinational designer, producer and marketer of a wide range of electromechanical power transmission products.  TB Wood's is an established designer, manufacturer and marketer of electronic and mechanical industrial power transmission products, which are sold to North American and international manufacturers and users of industrial equipment.  The transaction is expected to close in the second quarter of 2007.

"TB Wood's is a great fit with the existing Altra platforms and meets our disciplined acquisition philosophy perfectly," said Michael L. Hurt, Chairman and CEO of Altra.  "The acquisition of TB Wood's broadens our growing coupling product line and adds engineered belted drive systems as well as adjustable speed electronic drives and systems to our product portfolio."

Genstar Chairman and Managing Director Jean-Pierre L. Conte said, "The combination of these two companies creates a leader in the power transmission industry.  We are pleased to see Altra continue its strategic growth strategy and fulfill our vision for the company to enhance its brands and product offerings.  We are confident that Mike and his team will effectively integrate these two companies and expand its global operations."

Genstar created Altra in 2004 with the acquisition of Colfax Power Transmission Group and its subsequent combination with Kilian Manufacturing Corporation.  Since then Genstar has helped management with add-on acquisitions, including the 2006 acquisitions of the Hay Hall Group, a UK- based manufacturer of mechanical power transmission products and Bear Linear, a manufacturer of high value-added linear actuators for mobile off-highway and industrial applications.

About Genstar Capital, LLC

Based in San Francisco, Genstar Capital (http://www.gencap.com/) is a private equity investment firm that makes leveraged investments in quality middle-market companies.  Genstar Capital works in partnership with management to transform its portfolio companies into industry-leading businesses.  With more than $900 million of committed capital under management and significant experience investing in businesses, Genstar focuses on selected segments of the industrial technology, life sciences, healthcare services and business services sectors.

About Altra Industrial Motion

Altra is a leading multinational designer, producer and marketer of a wide range of electromechanical power transmission products.  The company brings together strong brands covering over 35 product lines with production facilities in six countries and sales coverage in over 70 countries.  Our leading brands include Boston Gear, Warner Electric, Formsprag Clutch, Ameridrives Couplings, Industrial Clutch, Kilian Manufacturing, Marland Clutch, Nuttall Gear, Stieber Clutch, Wichita Clutch, Twiflex Limited, Bibby Transmissions, Matrix International, Inertia Dynamics, Huco Dynatork and Warner Linear.

About TB Wood's Corporation

TB Wood's is an established designer, manufacturer and marketer of electronic and mechanical industrial power transmission products, which are sold to North American and international manufacturers and users of industrial equipment.  Headquartered in Chambersburg, Pennsylvania, the company operates production and sales facilities in the United States, Canada, Mexico, Germany, Italy and India. 

DATASOURCE: Genstar Capital



CONTACT:  Chris Tofalli, [phone], for Genstar Capital



Web site:  http://www.gencap.com/

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